Question

Seattle Coffee Limited's bank statement for the month of November 30, 2020 showed a balance per bank of $7,000. The company's general ledger Cash account showed a balance of $5,904 at November 30, 2020. Other information is as follows:

1. Cash receipts for November 30 recorded on the company's books were $5,200, but this amount does not appear on the bank statement.

2. The bank statement shows a Bank charge fee for $40 for cheque printing charges.

3. Cheque #119 payable in the amount of $248 to Holt Corporation was recorded in the general journal for $284 and cleared the bank for $248. The correct amount of Cheque #119 is $248. The bookkeeper made an error.

4. The total amount of cheques outstanding at November 30 was $5,800.

5. The bank statement shows and EFT for Utilities of $200.

6. The bank returned an NSF cheque from a customer for $560.

7. The bank statement included a deposit for $1,260, which represents the electronic collection of customer accounts which have not yet been recorded on the company’s books.

Instructions

(a) Prepare a bank reconciliation for Seattle Coffee Limited at November 30, 2020. (hint: use the template on Moodle to ensure correct formatting)

(b) Prepare any journal entries necessary as a result of the bank reconciliation.

Answer 1